UNDERSTANDING HUMAN

RESOURCE MANAGEMENT

Chapter 1 – Introduction to Human

Resource Management
Summary:
 Definition of human resource management
 Difference between personal management

and human resource management

 Importance of human resource management
 Background to human resource management
Dictionary definition :
 a model of personnel management that
focuses on the individual rather than taking a
collective approach. Responsibility for human
resource management is often devolved to
line management. It is characterized by an
emphasis on strategic integration, employee
commitment, workforce flexibility, and
quality of goods and service. (bnet dictionary)
HR Guru’s definition:
 Human resource management refers to the
practices and policies you need to carry out
the personnel aspects of your management
job, specifically, acquiring, training,
appraising, rewarding, and providing a safe,
ethical, and fair environment for your
company’s employees (Dessler 2009)
Why is HR management important:
 Managers do not want to hire wrong person for
the job.
 To experience less labour turnover
 To pin point employees not doing well.
 To avoid your company from taken to court due to
discriminatory actions.
 To commit any unfair labour practices.
 To allow a lack of training to undermine your
departments effectiveness.
 To adapt to the changing work place environment.
Development of the HRM concept:
 The foundation of HRM emerged from several interrelated sources. These
include conflict management associated with the tensions and contradictions
which are inherent in the employment relationship, the increased
specialization of labour related to the growth in the scale of work
organizations, the scientific approach of management to managing people,
the empire building activities of the specialists, and the employment related
law which heavily guides and the rights of employees and employers.

 The concept of HRM was first developed in 1982. The common use of ‘HR’ or
‘HRM’ as an alternative term to personnel management took place in the
second half of the 1990s. Those who dislike the term HRM often refer to
‘people management’.
Difference between Personal Management and Human resource management:

 According to Lowry PM and HRM are the

successive stages of the same concept. As
such “Human Resource Management is just
the contiuning process of personnel
management – it is not different.

 However as such they have some differences

to be taken into account:
Difference between PM & HRM
 HRM is proactive in nature. It is not only
concerned with present organizational
conditions but foresees future necessities.
 HRM is a resource-centered activity,
focusing more on the managerial aspects.
 HRM emphasizes open-ended contracts,
which can be modified depending upon
the demands of business.
 HRM is based on the philosophy that
better performance itself is a cause of job
satisfaction and morale.
 HRM seeks to develop the competencies of
the employees on a sustained basis.
 PM is reactive in nature. It satisfies itself by ensuring
peaceful labour-management relations.
 PM is employee centered, focus on hiring, training,
compensation and maintaining workforce.
 PM emphasizes on strict rules, guidance and
contracts that govern the relationship between the
workforce and management. Eg: collective
bargaining.
 PM considers job satisfaction and morale as a
source of better performance. A contented worker is
a productive worker.
 PM is a status quo-based administrative function:
Employees get uniform rewards based on job
evaluation.
Emerging role of HRM:
 Changing nature of the work – technological advancements,
require more educated and skills workers, increasing service
sector.

 Widening scope of HR activities – globalization.

 Greater emphasis on HRIS ( Human Resource Information

System).

 Changing labour market conditions.

 Increasing importance on HPWS( High Performance Work

systems.
Important points to note:
 Reading and understanding the concept of HRM.

 Researching on successful companies HRM functions.

 Further reading about the chapter could be taken from the

following e-books:
- A framework for Human Resource Management by Gerry
Dessler.
- Human Resource Management by Durai
Question for Discussion:
 Evaluate the future role of HRM in the
perspective of Maldives.

 “HRM seeks to achieve personal and social

goals”. Outline major functions of HRM.